Sri Lanka shares fall for 9th session; capital gains tax weighs

Reuters Staff

COLOMBO, June 30 (Reuters) - Sri Lankan shares ended lower
for the ninth straight session on Thursday as comments from a
minister earlier this week on the imposition of capital gains
tax on equities continued to dampen sentiment.

Sri Lanka will impose a capital gains tax on profits from
equities, a senior government minister said late on Monday, as
the government tries to shore up its finances to meet conditions
for an IMF loan.

The benchmark Colombo stock index ended 0.12 percent
down at 6,283.27. It has fallen 2.83 percent in the last nine
sessions.

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"It's the confidence factor which is impacting the market.
Everybody is on the sidelines. Investors want to see the details
of the capital gain tax, such as tax-free threshold," said
Dimantha Mathew, head of research, First Capital Equities (Pvt)
Ltd.

Turnover stood at 449.5 million rupees ($3.09 million), much
lower than this year's daily average of around 746.3 million
rupees.

European and Asian stock markets built on a recovery from
the shattering aftermath of last week's Brexit vote as investors
wagered central banks would ultimately ride to the rescue with
more stimulus.

Global uncertainty after Britain's decision to leave the EU
also weighed on the market with continued foreign selling.

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Overseas funds offloaded 6.12 billion rupees worth of
equities so far this year, but were net buyers of 31.6 million
rupees worth of shares on Thursday, recording the second net
inflow in the last six sessions.

Shares in conglomerate John Keells Holdings Plc
fell 13.18 percent after a subdivision of the shares.